Tim Heijn, managing director of Northern Lights CCS, expressed cautious optimism about the carbon capture and storage (CCS) sector during a panel discussion at Upstream's Global Development and Decarbonisation Week 2026. Northern Lights, a Norwegian government-backed joint venture between Equinor, TotalEnergies, and Shell, is a flagship CCS project on the Norwegian Continental Shelf that has achieved proof of concept and demonstrated strong technical reliability.

Full Value Chain in Operation

Heijn confirmed that the project now operates a complete value chain for carbon dioxide transport and storage, serving industrial emitters. Initial results indicate good infrastructure and reservoir performance, with all equipment and reservoirs functioning as expected. The project has established a full chain encompassing capture, transport, and storage, showing that the system is running effectively.

Phase 2 Expansion and Customer Base

Northern Lights took a final investment decision on Phase 2 early last year, aiming to increase storage capacity from 1.5 million tonnes per annum to approximately 5 million tonnes per annum. The company is actively building a broader customer base across Europe, having secured several industrial clients. It is also exploring diverse transport options, including shipping and smaller-scale trucking solutions, to widen access to its network.

Scaling Through Industrial Hubs

Heijn emphasized that scaling CCS deployment depends on developing industrial hubs that can aggregate volumes and improve economics. By clustering emitters and expanding transport options, operators can achieve efficiencies not possible in standalone projects. He noted that the next big step is scale, and once a nucleus of projects exists, hubs can be created around it.

Commercial Sustainability and Challenges

For early movers like Northern Lights, the key challenge is to scale up and demonstrate that CCS can evolve into a commercially sustainable market. Heijn acknowledged that the business case for CCS in Europe remains complex and layered, relying on a combination of carbon pricing, subsidies, and emerging markets for low-carbon products. Looking ahead, cost reductions, along with better risk allocation and coordination across stakeholders, will be critical to accelerating deployment. He concluded by reiterating his cautious optimism, describing CCS as an essential tool.